Amazon Web Services (AWS) opened its first Middle East data centres in neighbouring Bahrain in 2019.
The Abu Dhabi Investment Office (ADIO) said the deal was part of its efforts to attract investments that build technology capabilities and accelerate innovation.
AWS Senior Vice President of Global Infrastructure Peter DeSantis said: "We are excited to build on the great momentum of cloud adoption in the Middle East by providing more choice for customers in the UAE to run applications and store data locally.
“The new AWS Region supports the UAE’s focus on promoting technology innovation that has made it a thriving global hub for entrepreneurs, e-governments, and multi-national businesses. With the new region, organizations of all sizes will be able to innovate faster and serve end-users with even lower latency across the region.”